INNOVATION-BASED RURAL DEVELOPMENT

Abstract

The main changes in rural development result from the newly defined rural development goals, which are the result of focusing on the space and not so much on the agricultural sector alone. In the transition countries, innovation is of key importance, not only at entrepreneurial and production levels but also at organisational, motivational and leadership levels. Technological changes and implementation of new communication technologies have been the major driving force for developing the rural area as an integrated space. Development initiatives are generated in the local environment. Initiatives are being interconnected, including policies by different economic sectors at a multi-institutional level. The crucial requirements for success are: innovations, flexibility, competences, efficiency and synergy, which lead to a deviation from unilateral sectorial dependency to broad inter-sectorial cooperation and an integrated approach. The capacity of regions to support learning and innovation processes is a key source of competitive advantages. Human capital is essential driver of rural innovation. Innovation is not merely about technology – it is about change in human behaviour.